Unemployment insurance tips for business owners
A joint federal and state program, unemployment insurance provides short-term benefits to the jobless while they search for new employment.
Your company and other businesses fund unemployment programs through FUTA (Federal Unemployment Tax Act) and SUTA (State Unemployment Tax Act) tax payments.
In Florida, the maximum pre-tax unemployment benefit is $275 weekly. Claimants must show proof they are actively looking for work to receive benefits.
Most qualified individuals must be out of work for reasons beyond their control, such as downsizing or layoffs, and meet any other requirements determined by their state of residence.
However, not all jobless workers will be eligible for unemployment benefits. Having a signed employee handbook that outlines company policies and procedures will help you contest any claims that may be erroneous.
Further, some forms of misconduct may disqualify a terminated employee from collecting unemployment compensation benefits, including:
- Theft or damage of company, employee or customers’ property
- Using abusive, threatening or profane language
- Falsifying company records
- Harassment, assault or physical violence in the workplace
- Violating company policies, including drug and alcohol use
- Excessive unexcused absences or tardiness
Employees who resign by choice generally do not receive unemployment benefits unless they can prove just cause, such as unsafe working conditions or harassment.
When a former employee files a claim, your company will receive notice from the state. As the employer, you have the right to challenge any unemployment claims you believe to be false or invalid
It’s imperative to maintain concise and accurate disciplinary documentation for all employees from the start of employment to their termination to help back up your dispute of the claim, and to avoid a potential lawsuit.
Michele Abbott is an HR specialist with Integrity Employee Leasing, a Professional Employer Organization (PEO) based in Charlotte County.